China spent more on mass COVID-19 testing than its military: research

Recent research results from China’s financial securities firms show that the cost of the Chinese regime’s massive COVID-19 nucleic acid testing exceeded its military spending in 2021, and will deplete China’s national health insurance funds within three and a half years if citizens take the test. every two days as required by the regimen.

Mainland Chinese news portal Sina.com published the research report by Huachuang Securities macro research team on May 23. The report noted that according to unofficial statistics, combined with changes in testing volume and unit price, since the COVID-19 outbreak, the estimated cost of nucleic acid testing has been about 300 billion yuan ( about 44.7 billion US dollars), of which nearly 150 billion yuan ($22.3 billion) was spent in the first four months of this year.

The research team said the premise of the calculation is that about 80 percent of the cost of regular nucleic acid tests is borne by health insurance that employers pay for their employees. and about 20 percent is paid by local governments’, at all levels, which comes from taxpayers. Chinese health insurance has 3.6 trillion yuan (about 533.5 billion US dollars) in funding, which is enough to cover the cost of nationwide testing of citizens every two days for three and a half years.

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A health worker takes a swab sample from a man to be tested for the COVID-19 coronavirus at a makeshift testing site in Zhongguancun in Beijing on April 26, 2022. (Jade Gao/AFP via Getty Images)MOREHIDE

The Chinese communist regime ordered that nucleic acid testing be done regularly and be standardized from May 9, and that nucleic acid “sampling circles” (test sites) should be set up within a 15-minute walk at big cities.

Guo Yanhong, the supervising commissioner of the Medical Administration and Medical Administration Bureau of the regime’s Health Commission, said at the State Council press conference on May 23 that Hangzhou and Shanghai have already made sampling circle designs. . Shenzhen, Dalian, Hefei, and many cities in Jiangxi and Hubei have also started to set up “sampling circles.”

Henan province announced on May 21 that all residents in the province must take a nucleic acid test every 48 hours. Meanwhile, an analysis article on Sina.com titled “A 48-hour nucleic acid test in Henan Province is expected to cost about 82.05 billion yuan for a year” attracted attention but has since been removed. .

The investigation report also pointed out that, according to the regulations of Shenzhen, Qingdao, Suqian and other cities, China’s health insurance reimburses 70 to 95 percent of the cost of testing, and local government finances cover about of 20 percent.

Mainland Chinese media China Business Network reported on May 25 that health insurance departments in many parts of the country recently received a letter from the National Health Insurance Bureau, clearly stating that the use of funds health insurance to pay for nucleic acid tests on a large scale is against. health insurance policies and must stop immediately.

However, if health insurance does not cover the cost of nucleic acid testing, there will be a huge financial burden on local governments. Due to the closures, the tax revenue of more than 30 cities in mainland China fell from April this year, the report said.

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People from a residential block line up to take samples during a citywide COVID-19 nucleic acid testing campaign on April 1, 2022 in Shanghai, China. (Zhang Suoqing/VCG via Getty Images)

Tao Chuan, chief macro analyst at Soochow Securities, published a research report earlier this month. Based on the unit price of nucleic acid tests in mainland China, he estimated that if all major cities in China implement standardized nucleic acid tests, the monthly cost will reach 143.6 billion yuan (about 21.3 billion US dollars). , or about 1.72 trillion yuan (about $255.4 billion) per year, which is 1.5 percent of China’s nominal GDP in 2021 and 8.7 percent of government revenue. The total is higher than China’s 1.37 trillion yuan (about $203.4 billion) of military spending in 2021.

However, he believes this figure is still less than the economic damage caused by the lockdowns.

Tao said the Chinese regime may issue special bonds to cover the cost.

The online outlet “Financial Business World” said that when the government runs out of money, collects more taxes, issues bonds or prints more money, “it is still the citizens who will pay for it.”

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Alex Wu is a US-based writer for The Epoch Times who focuses on Chinese society, Chinese culture, human rights, and international relations.

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